The Bank of the Philippine Islands
Date of Publication
1998
Document Type
Oral Comprehensive Exam
Degree Name
Master of Business Administration
Subject Categories
Business Administration, Management, and Operations
College
Ramon V. Del Rosario College of Business
Department/Unit
Decision Sciences and Innovation
Abstract/Summary
The Bank of the Philippine Islands is one of the leading commercial banks in the Philippines and is the country's oldest and one of the oldest banks in Southeast Asia. In 1996, the bank was the third largest in the country in terms of total assets, loans and deposits with total assets of P175.2 billion, total loans of P103.1 billion and total deposits of P131.2 billion. The bank provides a range of commercial and retail banking and financial services including a variety of lending and deposit taking services, branch banking, ATM and electronic banking services, credit card services, and investment banking and other services.
The bank's strategy is to maintain or enhance its position as one of the leading banks in the country in all of its major business segments, to continue to expand the range and volume of its services within prudent limits, and to remain a leader in the development of new products and the use of technology for the provision of banking services. For many years, its lending business was predominantly focused on major domestic corporate customers. In recent years, however, a major part of the bank's strategy has been to increase its lending focus on the middle-market commercial sector, especially sector, especially in the ethnic Chinese sector, as well as on the customer sector. This focus is in response to increased competition for major corporate customers from both domestic and foreign banks in the Philippines, as well as the higher margins associated with middle-market and consumer lending. In carrying out its strategy, the bank believes that its extensive branch and electronic network, its relationship with major corporate customers, the quality of its management team, and its reputation as one of the most prestigious and financially sound banks in the Philippines will continue to provide it with an advantage over many of its competitors.
An analysis of the banking industry using Porter's model revealed: the existence of high threat from new entrants and from substitute; the high degree of competition among existing players; and a high bargaining power from suppliers and customers (providers and users of funds, respectively). In short, the industry was found to be rather unattractive. Using the SWOT analysis, the bank's strengths were identified to include: its extensive branch network; its leadership in electronic and consumer banking; its highly motivated and qualified personnel; and the favorable evaluations it had received from top international rating agencies. Among the bank's weaknesses are: its widely dispersed structure; the compositions of its loan portfolio; and its reliance on short-term funding. Identified as threats to the bank's profitability are: the currency crisis in Southeast Asia; further Central Bank liberalization initiatives; political and economic instabilities; and personnel problems. Opportunities that the bank can take advantage of melude: the accelerating developments in the countryside; the increasing use of technological developments; and the rising popularity of derivative instruments.
Overall, it is recommended that the bank maintain its current strategies. However, it is suggested that there be a conscious effort achieve product leadership by offering superior value to the bank's customer by coming up with superior products and services driven by superior technology. This will enable the bank to differentiate itself from competition and thus sidestep the industry's unattractiveness. As a consequence of this effort, proper management of technology is imperative to sustain the bank's leadership.
Abstract Format
html
Language
English
Format
Accession Number
OCE0427
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
49 numb. leaves
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Recommended Citation
Diño, R. T. (1998). The Bank of the Philippine Islands. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/2694
